ESR India To Develop Its First In-city Distribution Centre In Delhi By 2023
Located in Alipur, the 8.2-acre distribution centre will involve an estimated investment of Rs.175 crores
Mumbai, 03 February 2022: ESR, Asia Pacific’s largest real asset manager powered by the New Economy will develop an in-city distribution centre in Delhi with an estimated investment of Rs.175 crores. This 8.2-acre site is in Alipur and has a development potential of ~300,000 sq. ft. Situated next to NH44, this location will help e-commerce as well as grocery e-commerce, pharmacy and healthcare delivery services, cloud kitchens, packaging, cold storage companies access over 30 million consumers of India’s largest metropolitan. ESR has developed several multi-storey distribution centres across the Asia Pacific and will bring its design and development expertise to this G+2 structure. The in-city distribution site is scheduled for launch in 2023, and with this acquisition, ESR expands its footprint in India to 16 locations.
Situated in the north of Delhi, the site will enable just-in-time delivery for 2 million customers in Rohini, Shalimar Bagh, Pitampura, Ashok Vihar and Model Town, reachable within 20 minutes. The location features superior citywide connectivity via the Outer Ring Road, a 5-minute drive from the site, Eastern Peripheral Expressway (KMP) and has access to neighbouring states of Haryana and Punjab via NH44.
Delhi has a dearth of approved warehouses within city limits, the facilities available are mostly archaic, and not compatible with the latest technology, safety, and security measures. ESR will be the first institutional developer to launch a state-of-the-art in-city facility in Delhi.
The in-city distribution centre could generate direct employment for approx. 3000-4000 people once fully occupied and 1500-2000 indirect employment through companies managing trucking, delivery riders, facility management and security.
Speaking about the announcement, Abhijit Malkani, CEO, ESR India, stated, “ESR India is committed to building state-of-the-art facilities to support the development and modernisation of the country's supply chain. In-city distribution real estate is still at a nascent stage where the availability of institutional-grade facilities within key metros has been a major concern for our tenants. We wanted to address this by being one of the early movers through the acquisition of our first in-city site in the capital and the development of a best-in-class facility with our experience and track-record across other APAC regions.”
- ESR’s first G+2 structure in India that will follow its development best practices for multi-level warehouses across the Asia Pacific region
- Just-in-time delivery for 2 million consumers located within a 20-minute driving distance, Outer ring road is reachable within 5 minutes
- Ideal location for online grocery formats, pharmaceutical deliveries, cloud kitchens, packaging, e-commerce, and cold storage segments
- Higher efficiency in storage volumes
- Enhanced connectivity via the metro network for workforce
- Advanced security via AI-enabled cameras
- Certified Green buildings- Energy, water, waste, and a material-efficient campus that benefits indoor environment quality and occupational health.
ESR is APAC’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally. With US$140 billion1 in gross assets under management (AUM), our fully integrated development and investment management platform extends across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand, and Southeast Asia, representing over 95% of GDP in APAC, and includes an expanding presence in Europe and the U.S. We provide a diverse range of real asset investment solutions and New Economy real estate development opportunities across our private funds business, which allow capital partners and customers to capitalise on the most significant secular trends in APAC. With 14 listed REITs managed by the Group and its associates, ESR is the largest sponsor and manager of REITs in APAC with a total AUM of US$45 billion. Our purpose – Space and Investment Solutions for a Sustainable Future – drives us to manage sustainably and impactfully and we consider the environment and the communities in which we operate as key stakeholders of our business. Listed on the Main Board of The Stock Exchange of Hong Kong, ESR is a constituent of the FTSE Global Equity Index Series (Large Cap), Hang Seng Composite Index and MSCI Hong Kong Index. More information is available at www.esr.com and www.in.esr.com.